Nickel Industries has successfully issued US$800 million in senior unsecured notes, a financial milestone that materially extends the company’s debt maturities while reducing its overall cost of debt. This refinancing transaction provides enhanced balance sheet flexibility and removes significant near-term amortisation requirements, positioning the company to fund growth initiatives while navigating ongoing volatility in global nickel markets. During 2025, the company maintained production and sales volumes consistent with 2024 levels despite challenging pricing conditions, demonstrating the operational resilience of its vertically integrated business model.
On the operational front, Nickel Industries achieved several key regulatory and permitting outcomes in Indonesia that support its long-term strategy. The Indonesian government approved an expanded RKAB quota for 2026 of 14.3 million wmt for the Hengjaya Mine, backed by a five-year AMDAL environmental approval. This expansion incorporates innovative environmental solutions, including Indonesia’s first approved in-pit tailings storage facility, dedicated slurry pipelines linking mining and processing operations, and lower-cost, lower-emissions ore supply and tailings transport infrastructure. These approvals enhance both operational efficiency and environmental performance, while strengthening supply chain traceability for end customers in an increasingly ESG-conscious market.
The company continued to de-risk its ENC HPAL Project through strategic partnerships and commercial refinements. Sphere Corp entered as a 10% equity partner in the project, providing external validation of ENC as a globally significant, low-carbon nickel operation. Concurrently, Nickel Industries reached a revised acquisition agreement with partner Shanghai Decent that increases the company’s ownership stake to 46% while materially reducing expected future cash outflows. This renegotiation provides certainty around remaining acquisition commitments and demonstrates improved project economics without requiring the original capital deployment level.
Nickel Industries made tangible progress on long-term ore security through the Sampala Project. The company executed a memorandum of understanding for exclusive supply of limonite ore from Sampala to an adjacent HPAL facility, introducing novel solutions to extract value from previously uneconomic low-grade saprolite ore. A maiden JORC Resource at Sampala was supported by extensive drilling programs, and construction of the first eight kilometre section of the 24 kilometre haul road to IMIP is now 90 percent complete. These developments reinforce the company’s pathway toward self-sufficiency in ore supply and leverage strategic advantages of its integrated mining and processing footprint.
For investors, the combination of improved financial flexibility, regulatory progress in Indonesia, and advanced de-risking of major projects reflects disciplined capital management through a volatile cycle. The focus on vertical integration and long-term ore security positions the company to capture value as nickel markets recover. Investors should monitor realisation of the expanded RKAB quota in 2026, progress on ENC project completion with Sphere’s capital contribution, and advancement of Sampala Project development as key indicators of execution capability and shareholder value creation.
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About Nickel Industries Limited (ASX: NIC)
Nickel Industries Limited is an ASX-listed mining company that owns and operates a portfolio of nickel mining and downstream processing assets located primarily in Indonesia. The company produces nickel through high pressure acid leach (HPAL) technology and rotary kiln electric furnace (RKEF) projects, supplying nickel for stainless steel production and the electric vehicle supply chain.
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